Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf ('UKCS') region of the North Sea, is pleased to announce that it has now completed its acquisition of the entire issued share capital of CIECO V&C (UK) Limited ('CIECO V&C'), owned by ITOCHU Corporation ('ITOCHU') and Japan Oil, Gas and Metals National Corporation ('JOGMEC') (the 'Acquisition').
As previously announced on 26 November 2020, the consideration for the acquisition consists of a completion payment of GBP150,000 and two contingent payments based on the UK'sOil & Gas Authority's consent for a Field Development Plan and the potential future development and production of oil volumes from the Verbier discovery in the Upper Jurassic (J62-J64) Burns Sandstone reservoir located on Licence P2170 (Blocks 20/5b and 21/1d) ('Licence P2170').
The Acquisition provides JOG with an opportunity to create significant value through potentially developing the Verbier discovery as part of its planned Greater Buchan Area ('GBA') hub. Licence P2170 also benefits from multiple material exploration prospects that have high value potential through tie-backs to the proposed new GBA hub.
In addition, the Company is also pleased to announce that finnCap Ltd has been appointed as its Joint Broker with immediate effect.
Andrew Benitz, CEO of Jersey Oil & Gas, commented: 'I am pleased to announce the completion of our acquisition of CIECO V&C, which adds the final component part of the GBA to our existing portfolio. This is an important acquisition for our recently launched farm-out process in respect of our GBA development project and increases JOG's discovered resources, adds material value and exploration upside in addition to useful tax losses that accompany the corporate acquisition.'
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Notes to Editors
Jersey Oil & Gas is a UK E&P company focused on building an upstream oil and gas business in the North Sea. The Company holds a significant acreage position within the Central North Sea referred to as the Greater Buchan Area ('GBA'), which includes operatorship and 100% working interests in blocks that contain the Buchan oil field and J2 and Glenn oil discoveries and an 100% working interest in the P2170 Licence Blocks 20/5b & 21/1d, that contain the Verbier oil discovery and other exploration prospects.
JOG's total GBA acreage is estimated by management to contain 190 million barrels of oil equivalent ('mmboe') of discovered P50 recoverable resources net to JOG, in addition to significant exploration upside potential of approximately 220 mmboe of prospective resources in close proximity to the Company's planned Buchan platform. JOG has recently concluded the Concept Select phase of an FDP for the Greater Buchan Area and plans to progress into Front End Engineering and Design (FEED) later this year.
JOG is focused on delivering shareholder value and growth through creative deal-making, operational success and licensing rounds. Its management is convinced that opportunity exists within the UK North Sea to deliver on this strategy and the Company has a solid track-record of tangible success.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018.
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